ECONOMICS
HUMAN CAPITAL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Expenditure on Education
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Expenditure on Subsidy
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Expenditure on fertilisers
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Expenditure on Education
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Detailed explanation-1: -A better-educated person has greater skills and knowledge and therefore greater opportunity to work and earn a higher income. Similarly, a healthy person is an asset for the nation as he is more productive than a sick person. Hence, expenditure on education and health are important sources of human capital formation.
Detailed explanation-2: -Investment in education is considered as one of the main sources of human capital. There are several other sources as well. Investments in health, on-the-job training, migration and information are the other sources of human capital formation.
Detailed explanation-3: -The main source of human capital is investment in education.
Detailed explanation-4: -Human capital refers to the skills and knowledge possessed by an individual. Human capital formation can be increased by investing more in education sector and promoting the importance of gaining knowledge and skill. By doing this, national income of a country rises up. Hence, correct answer is option D.
Detailed explanation-5: -Education and health are the two major sources of human capital in a country.